A franchisor, charges an initial franchise fee of P920,000, with P200,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10% is P545,872. Franchise operations already started and no future services are required to be performed. The amount of revenue from franchise fees is:    a. 745,872 b. 721,871

Q: migos Burrito Inc. sells franchises to independent operators throughout the northwestern part of the…

A: Franchise:   Franchise is the right to sell a company’s product with the specified terms and…

Q: Initial franchise fee charge of NAM of P1,700,000, requiring a P420,000 down payment when the…

A: Franchise fees=P1,7000,000 Down payment made=P420,000 Present value discounted at 10%=P1,014,000…

Q: Sr. Juan Inc. a franchisor, entered into a franchise agreement with Mang Pedro, franchisee, on March…

A: Franchise Agreement The purpose of providing the franchise agreement is to use the brand and name of…

Q: On April 1, 2022, Pink Company signed an agreement to operate as a franchisee for a franchise fee of…

A: cost of franchisee= Initial payment + PV of future payment Future payment = 500000 semi annual…

Q: 1. ABC Island, Inc. charges an initial franchise fee of ₱75,000 for the right to operate as a…

A: Revenue refers to the amount collected or acquired through sale of goods and services. It is…

Q: Pina Universe charges an initial franchise fee of $ 234,000. Upon the signing of the agreement, a…

A: a. Date Particulars Debit ($) Credit ($) August 1, 2020 Cash 26,000     Notes receivable…

Q: Hope Corp. sells a franchise for an initial fee of P1,400,000. A down payment of P400,000 is…

A: When the capability of note is reasonably assured, the journal entry would be debit of cash and…

Q: ABC sells franchise arrangement throughout La Trinidad and Itogon. Under a franchise agreement, ABC…

A: Franchise is defined as the form of the business that includes the business which is in operation or…

Q: MIKE restaurant sold a fast food restaurant franchise to Irish. The sale agreement, signed in…

A: How much is the Franchise Revenue for : 2020 = P 184,505 How much is the Continuing Franchise Fee…

Q: You are required to write necessary treatments per IFRS 15. Also show the net effect of this…

A: 1. Contract price of the sophisticated machinery is for 200,000. A sales of 200,000 is recorded on…

Q: On January 1, 20X2, ABC signed an agreement to operate as a franchisee of Ace Company for an initial…

A: The assets are the items of the balance sheet which will generate future economic benefit for the…

Q: Solve the following problem in good accounting form. Burger King granted a franchise to Shakers…

A: The franchise is the right to sell the products or do service of a big renowned company. The company…

Q: Watts Inc. charges an initial franchise fee of P690,000, with P150,000 paid when the agreement is…

A: Revenue is the amount of money earned from anything like sales, services etc. It is the gross amount…

Q: a. How does the company recognize its revenue to Customer A and Customer B? b. Make a journal on…

A: a.

Q: ent year, Goldilocks Inc. signed an agreement to operate as  a franchise of Cafe for an initial…

A: Acquisition cost refers to the expenses born by an entity in acquiring an asset.

Q: Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,00, with P200,000…

A: Solution Dear student as per Q&A guideline we are required to answer the first question only .…

Q: Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,00, with P200,000…

A: This question deals with how much revenue should be recorded as the revenue from franchise fee.…

Q: Tam's Pizza, Inc. charges an initial franchise fee of P50,000 for the right to operate as a…

A: From the perspective of the Franchisor to earn the amount of revenue from the franchise contract…

Q: Commando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per…

A: The original sale price of the products sold prior to alteration will not be modified. As previously…

Q: le when the agreement was signed and the balance in five annual payments of P8,000 each. Tam's is…

A: In franchise business, owner of the business which has its business market acceptability along with…

Q: Burger King granted a franchise to Shakers where Shakers will have to pay franchise fee of…

A: The franchise royalty is 5% of the gross amount of sales of the previous month and other franchise…

Q: On January 1, 20x1, Marc Company enters into a contract with a custome franchise fee is P200,000,…

A: The license is sold here with the down payment and four installments. The Franchise fee was…

Q: Frozen Delight, Inc. charges an initial franchise fee of $75,000 for the right to operate as a…

A: Date Account Titles and Explanation Debit Credit April 1, 2017 Cash $25,000…

Q: Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,00, with P200,000…

A: solution given Initial franchise fee 920000 Payment on date of agreement 200000  The…

Q: Consider a FRA where IBM agrees to borrow $100 mil. from a dealer for 6 months starting in 4 years.…

A: Answer: The correct answer is option (2) Dealer; IBM; $1,000,000

Q: ABC sells franchise arrangement throughout La Trinidad and Itogon. Under a franchise agreement, ABC…

A: Franchise is a method of distributing product or services between two parts.it includes two parts 1)…

Q: Terrific Corporation, an equipment distributor, sells a piece of machinery with a list price of…

A: Terrific corporation, an equipment distributor Sells a piece of machinery with a list price =…

Q: On April 1, 2022, Pink Company signed an agreement to operate as a franchisee for a franchise fee of…

A: Data given: Initial payment =P 2,000,000 Balance payable in  six (6) semi annual payment  = P…

Q: On January 1, 2014, Heart Company signed an agreement to operate as a franchisee of Ace Company for…

A: Acquisition cost of franchise  = cash paid + Present value of future 4 annual payments discounted at…

Q: 880000 b 688,000 C. 708,000 d 2816,000 3. On January 1, 20x1, Devjo Co. bought a franchise from McDo…

A: The question is related to initial measurement of Intangible Assets. The total amount of initial…

Q: On January 1, 2022, Black Mamba Company signed an agreement to operate as a franchise of Doug…

A: Solution Given initial franchise fee  30000000 Down payment 10000000 Equal annual…

Q: Frozen Delight, Inc. charges an initial franchise fee of $75,000 for the right to operate as a…

A: Date Account Titles and Explanation Debit Credit April 1, 2020 Cash $25,000…

Q: On January 1, 20x1, Marc Company enters into a contract with a customer to transfer a license. The…

A: Step 1 comment Since you have posted a question with many sub-parts, we will solve three sub-parts…

Q: Fred Esquillo, Inc charges an initial franchise fee of P90,000 broken down as follows: Rights to…

A: A franchise is a technique wherein the brand name and know-how of a successful business are shared…

Q: ompany is contemplating factoring its accounts receivable. The factor will acquire P250,000 of the…

A: solution : Company is contemplating factoring its accounts receivable. The factor will acquire…

Q: A company purchase an equipment at a price of RM368 000 and makes a down payment of 10% of the…

A: In amortizing loans, the principal amount is repaid by making monthly payments which consists of…

Q: The franchisor charges an initial franchise fee of P110,000 broken down as follows: Right to trade…

A: A frenchise fees is paid by franchisee to franchisor for using the entity's…

Q: A Franchisor entered into a franchise agreement with B, franchisee, on March 31, 2021. The total…

A: A franchise is an agreement in which the owner of the asset (an asset can be the intangible asset or…

Q: On January 1, 20x1, Marc Company enters into a contract with a customer to transfer a license. The…

A: A contract can be defined as an arrangement between two parties that creates mutual responsibilities…

Q: Jan. 1, 2020, ABC Corporation entered into a franchise agreement with a P570,000 cash payment as…

A: Revenue recognition : revenue recognition for customer services will be recognise when the services…

Q: Westinghouse Company, a producer of washing machines, sells o various customers. It has a contract…

A: "A performance obligation is a guarantee in a contract with a customer to transfer an asset (such…

Q: At the beginning of the current year, Hart Company signed an agreement to operate aa a franchise for…

A: Equal annual payments P10,00,000 Present value of an ordinary annuity of 1 at 14% for 4 periods…

Q: On January 1, 2030, ABC granted a 3 year franchise contract with XYZ. The terms of the contract are…

A: Franchise Agreement In simple word the word franchise agreement which is described as legal…

Q: NAPA WINERY charges an initial fee of P5M for a franchise with P2M paid when the agreement is signed…

A: NAPA WINERY's Charges an initial fees = P5000000 Paid franchise fees = P2000000 Balance fees =…

Q: Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront…

A: The standalone selling price is the price on which a company can sell the product individually to…

Q: On January 1, 20x1, Marc Company enters into a contract with a customer to transfer a license.…

A: Transaction price refers to the consideration amount which the entity expects to get for…

Q: Dominador's Pizza Inc. enters into a franchise agreement on December 31, 20x7 giving Doming Corp.…

A: Franchise Revenue To recognize the franchise revenue is one of the important task of the franchise…

Q: BANGBANG operates and franchises restaurants around the world. As part of its franchise agreement,…

A: The contract includes a discount of P50,000 on the overall transaction, which would be allocated…

Q: Commando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per…

A: The original sale price of the products before alteration will not be modified. As previously…